An Accountant Recent Met with the CFO of a Major

question 16

Multiple Choice

An accountant recent met with the CFO of a major corporation.The accountant and this prospective client are contemplating entering into a professional relationship.The prospective corporate client has a history of violating the Foreign Corrupt Practices Act's provisions concerning bribery of foreign government officials.The accountant's job is to ensure that the company fully complies with this law.To accomplish this,the accountant will perform unannounced reviews of the company's accounting records and internal controls from time to time. The accountant's daughter told the CFO that her father is "an amazing accountant," which facilitated the professional introduction.The accountant's daughter recently was promoted to serve as this corporation's Director of International Sales-Asia Division.In all likelihood,the accountant:

• A) Should not agree to provide these services to this prospective client
• B) May provide services to this client, as long as the accountant's daughter does not also participate directly in the corporation's presentation of corporate financial transactions in the form of financial statements
• C) May provide all requested services because a conflict of interest does not currently exist and is not reasonably foreseeable
• D) May provide services to this client because safeguards against conflicts of interest readily are available

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Definitions:

Functional Theory

a theory that explains how aspects of society operate to fulfill necessary functions, maintaining social stability and equilibrium.

Attitudes

Refers to psychological tendencies expressed by evaluating a particular entity with some degree of favor or disfavor.

Utilitarian Function

The practical or useful role served by an object, system, or behavior, typically aimed at satisfying basic needs or accomplishing tasks.

Functional Theory

A theoretical perspective that explains how and why specific social, psychological, or physiological functions contribute to individual or societal stability.